Monday, August 1, 2011

Uva quality no big seller yet but things are looking up

By Steve A . Morrell

Uva quality, although not quite evident, the Malwatta Valley marks have begun to move up. Uva Highlands sold a BOP at Rs.500 per kilo. So too Ampitikanda in the Rs 450. Range.

However of note was that lower Uva, dominated by Adawatta in the Lunugala Basin sold a line of BOP 1 at Rs. 530. Brokers did say Uva quality was coming through but simultaneously were cautious in being overly optimistic on high end expectations. They said with conditions improving in the Middle East and on-set of Uva quality prices would move up.

However Ceylon Tea Brokers, in their report last week reiterated that rather than concentrate on countries currently buying Ceylon Tea it was now opportune that new markets be pursued. ‘The Industry should really look into penetrating untapped markets in the world rather than depend solely on CIS and West Asian countries. ‘ the report said.

Vicissitudes of market conditions influenced by driving forces of war and turmoil should be counter balanced by alternate options that could be made available if other countries also enter our trade options.

As reported by us over the past few weeks there are such markets being opened in the US, Australia, and a miniscule quantity being shipped to the UK. Pointers are that new markets should be opened more vigorously. China, India, and other Asian destinations should also be actively considered, Trade sources said.

Comparing crop performances in producer countries, Bangladesh seems to be the only country recording plus variences as compared to 2010 performances.

India continues to dominate production performances but because internal consumption increasing rapidly they would have less tea for export.

China too consume their production volumes, with just some bulk available for export.

Sri Lanka could pursue both these markets Brokers said.

Although green tea has entered the weekly auctions, there was hardly any enthusiasm in the auction room to enhance buying volumes.

However Tea bags, and value added teas are attracting new buyers.

We would have more detailed information in our tea column next week on new markets.

Meanwhile we also have had some information on automation of auctions.

The Indian experience has been cited as a failure and re-thinking on this subject is that Colombo being an efficient auction center should not be disturbed.

This week 7.7 million kilos will be on offer. Comparatively high, but these high end production amounts would not be prevalent for long. The week following, would also have quantities in excess of 7 million.

source - www.island.lk

No comments: